Sentences with phrase «single servicer»
The phrase "single servicer" refers to a situation where a single company or organization is responsible for providing a specific service, instead of multiple companies or individuals. Full definition
The Department of Education says it is trying to place borrowers with multiple Direct loans with a single servicer.
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Instead of the nine servicers that currently receive student loans, the decision would give all federal student loans to a single servicer, in effect creating a $ 1 trillion monopoly over the federal student loan industry.
If a single servicer were to receive all new federal student loan contracts moving forward, then that means that there's no incentive for them to provide decent customer service to borrowers (because you have nowhere to turn, unless you want to refinance your federal student loans in the private loan marketplace).
And recent moves toward a single servicer, though canceled, suggest a bleak future being planned for student loans.
This is especially concerning given that ED plans to lessen the weight it gives to companies» past performance when it selects its single servicer.
On first blush, the plan to switch to a single servicer resembles recommendations by consumer advocates for a single platform.
Education Finance Council (EFC), the national trade association representing nonprofit and state - based higher education finance organizations, including all the not - for - profit (NFP) Federal Direct Loan servicers, has raised concerns that ED's plan would create a monopolistic environment with little to no incentive to ensure the single servicer provides the highest quality of customer service to student loan borrowers.
Since that time, ED's portfolio of loans has grown significantly, so it would be even harder to extract and redistribute student loan accounts to another servicer if it became necessary to replace the single servicer.
Secretary DeVos's plan also eliminated the system of using multiple servicers and subcontractors, and replaced it with a single servicer to handle the loans for approximately 36 million student loan borrowers.
It is shocking that ED would ignore those elements and suggest a single servicer.
Historically, having a single servicer has not worked well for ED.
And for borrowers with student loans serviced by a number of lenders, refinancing those loans into a new Reset Loan can also simplify repayment so that the borrower only needs to submit one payment each month to a single servicer.
One of her points revolved around having a single servicer as a user platform, standardizing and centralizing the process for dealing with customer complaints and calls.
The Missouri Higher Education Loan Authority (MOHELA), one of nine student loan companies that manages the federal government's trillion dollar student loan portfolio, has filed a protest against the Department of Education's plan to choose a single servicer company for handling federal student loans.
Debra Chromy, president of the Education Finance Council, had the following to say, «Moving to a single servicer — who would be given sole discretion over subcontracting — would create a monopolistic environment with little to no incentive to ensure the single servicer provides the highest quality of customer service to student loan borrowers.»
Common servicing requirements for critical servicing activities, clear regulatory and policy guidance, and strong accountability measures applied in a multiple - servicer environment would best serve to achieve the objective desired by moving to a single servicer, while maintaining competition and choice.
Additionally, if you plan to exclude some loans from a single servicer, you will need to provide sequence numbers, loan IDs, or any identifying number for each loan to be included in your refinance.